Licensing MasterFormat?

Many of you know me, and I worked with many of you during my time at CSI. I think the questions being raised about CSI leadership and finances are fair and worth asking.

Here is the context as I understand it.

In late 2019 and 2020, CSI reported a significant income event tied to the sale of BSD SpecLink (a software company). My understanding is that this cash infusion helped offset ongoing declines in membership, certifications, education, and publication revenue. Around the same period, CSI was also working to exit the contract for the CONSTRUCT show, and COVID created an opportunity to do so.

Over the last few years, leadership has taken several short-term steps that improved the appearance of the financials, but may have come with long-term tradeoffs.

Key examples include:

  • The BSD sale was the largest one-time action, reportedly close to $17M.

  • CSI chose not to renew the riverfront office lease and moved to a smaller space on Pitt Street in Alexandria. That likely reduced rent and supported staff reductions. At the same time, the new space was renovated, which added costs.

  • The CDT renewal process shifted to require paid renewals, including for people who understood the certification as lifetime. Many members viewed this as a way to quickly bring in cash.

  • The MSR was adjusted, and the Annual Conference was launched. These changes also created new revenue opportunities from members and sponsors, with limited new content.

On the technical side, members were often told that major updates were on the way. Behind the scenes, many committees and working groups were reduced or shut down, and development slowed. Crosswalk was heavily promoted even as the technical function and institutional knowledge around CSIs classification and standards work declined. From the backend, CSI has produced limited substantive technical output since roughly 2021.

Operationally, after the CEO relocated to Santa Fe and COVID reduced in-office work, the Alexandria-based staff largely resigned or were laid off. By 2023, most remaining staff positions were eliminated, the main office was shuttered (only a few years after paying to have it completely renovated), and day-to-day operations were moved to an outside management company based in Tennessee, covering communications, web, billing, membership, sales, and social media. The last two staff members that I know of, besides the CEO, had left CSI by the end of 2024.

As of today, CSI appears to function largely through contracted support, with the CEO as the only permanent staff member. Members need to realize that they are funding the salary of a single employee, hellbent on controlling all communication channels while trying to make the books look less bad, despite still spending way too much money on things that do nothing more than offend members and dress up the windows of an empty storefront.

Interesting. Why, then, would CSI report all the following salaries on its tax filings?
Source:
https://projects.propublica.org/nonprofits/organizations/530242938

How on earth can an organization with a staff of one person spend $8.5M a year?

I have a question for anonymous, can you reach out to me by on LinkedIn or email?

I remember how much work was involved in the 2004 overhaul of MasterFormat. For everyone, even junior members such as myself at the time. How could an all new “Dynamic Standard” have been created without anyone being engaged in the process? My mental image is of someone sitting in the dark tapping away at a ChatGPT prompt trying to get AI to design and produce an all new system, with no real-world input or practical peer review.

@Nathan Woods: ding ding ding!

The 2024 Tax fillings are now over a year old. Liz, Velma, and Lisa are all now at new organizations (look at their LinkedIn profiles to see they all left in 2024). I left before things got REAL crazy so I didn’t really know Valerie and her LinkedIn doesn’t show she left, but from discussions with the other former staff have also mentioned that there were no staff left.

Keep an eye out for their 2025 tax fillings and I am sure you will see either just the CEO and board members, or there will be new names that are likely the assigned staff from the organization management company they outsourced CSI to.

You can also note that the old “staff directory” page on the website was removed from the site about a year ago - even though it wasn’t very helpful anyway since every department listing just said “send questions to xxx@csiresources.org” with the department name instead listing actual people.

@Brian Payne, I respect your request for information, but due to the litigious nature of the current leadership, I will try to remain anonymous at this time.

@Juste Fanou, in addition to the 2025 tax filings likely to no longer have Velma, Liz, and Lisa (again, not sure about when Valerie left), you can see the slow decline and turn over of staff by looking at the Internet Archive for the staff listing page (last archived in June 2024 before the page was turned off on the CSI website) - https://web.archive.org/web/20240622055450/https://www.csiresources.org/institute/staff

It shows the turnover over the 5-6 years leading up to the main office being shuttered and all operations being transferred to an outside contractor.

In 2024, we paid a “Digital Strategy Consultancy for Association IT” $880,037?!?!

Was it worth it?

The staff listing page is a shanda.

I appreciate you coming out with this. And yes, I am very well aware of the litigious nature of the current CEO. Fortunately, he doesn’t do very well once he’s challenged.

What puzzled me the most on their tax filings was how the CEO apparently reported only 1h/week on non-CSI activities (i.e. CIN) when at the same time most of the efforts seem to have been about promoting crosswalk and now Dynamic Standards two tools that offer very little benefit to the average member.

800k to a “digital strategy consultancy” while reporting a 2.5m deficit is crazy work though…

Y’all should ask for receipts…

Thank you (Unregistered Guest) for getting involved in what is clearly no longer your fight. We appreciate your concern for the members of CSI.

I doubt we’ll see such concern from our leadership.

Its apparent that many longtime CSI members are cross. And they may very well walk.

Will that become the new dynamic standard?

The purpose of the Board of Directors, on behalf of the membership, is to ensure that The Construction Specifications Institute (CSI or the Institute):

  1. Achieves appropriate results for or on behalf of the membership (as specified in Board Ends policies) at an optimal cost and
  2. Avoids unacceptable actions and situations.

[Source: “Governing Policies of the CSI Board of Directors,” Policy 2.0 Governance Purpose/Commitment, Date of adoption / Last revision: June 26, 2016]

“9. The Boards activities will be open and accessible to reasonable scrutiny by the membership, with the exception of personnel or other matters of a sensitive nature.”


[Source: “Governing Policies of the CSI Board of Directors,” Policy 2.1 Governing Philosophy and Values, Date of adoption / Last revision: June 26, 2016]

@Unregistered Guest: any idea how to formally make some of these requests? I feel like CSI is just hoping for this thing to blow over so they can return to business as usual.

With respect to interactions with members/customers, the CEO will not cause or allow conditions or procedures which are unfair, unsafe, untimely, unresponsive, undignified or which fail to provide appropriate confidentiality.
Further, the CEO will not:

  1. Collect, review, transmit, store, or destroy member/customer data without protecting against improper access to that information.
  2. Operate without clearly conveying to members/customers what may be expected from the services offered.
  3. Operate without having in place a complaint/response process to address concerns raised by members/customers.

[[Source: “Governing Policies of the CSI Board of Directors,” Policy 3.1 Interactions with Members / Customers Date of adoption / Last revision: June 26, 2016]

Board Governance Policy Manual: https://higherlogicdownload.s3.amazonaws.com/CSIRESOURCES/b00cc178-1ca0-4e36-aeae-82edcd55c99c/UploadedImages/CSI_Board_Governing_Policies_Manual.pdf

I’m especially interested about the last part on anti trust violations. I’m not sure how that’s reconciled with asking everyone to divulge their revenue so that they can be “quoted” a license for a potential competing product. It’s competition intelligence gathering if you ask me.

@Juste: May not relate directly to your question: https://www.justice.gov/atr/case-document/file/957541/dl

I just got censored over on the CSI Community forum.

More on this later, after I get this duct tape off of my mouth…